Question

The actual direct materials cost per pound was $8.50. The actual direct labor cost per hour was $14.50. What is the direct materials price variance per pound?

Answer 1

To calculate the direct materials price variance per pound, both the actual cost and the standard cost per pound must be known. Provided only the actual cost at $8.50 per pound, the variance cannot be determined without the standard cost.

Step-by-step explanation:

The student is asking for the calculation of the direct materials price variance per pound. Unfortunately, to accurately calculate this variance, we need both the standard cost per pound and the actual cost per pound for the materials. The student only provided the actual cost, which is $8.50 per pound. Without the standard cost to compare it to, we can't determine the variance. The direct materials price variance is calculated by subtracting the standard cost per pound from the actual cost per pound, then multiplying the result by the actual quantity of material used. The formula for direct materials price variance is: (Standard Cost per Pound - Actual Cost per Pound) x Actual Quantity of Material Used.